🏗️ Best Mortgage Rates for Investment Properties in September 2025

Introduction

As Canada’s real estate market stabilizes after years of turbulence, property investors in September 2025 are once again eyeing opportunities.
With hints of Bank of Canada rate cuts ahead, investment property mortgage rates are starting to shift — creating a short window where smart investors can lock in strategic financing before the next market cycle begins.

1. The Current Investment Property Rate Landscape

As of September 2025, investment mortgage rates in Canada average:

• 5-year fixed: 4.89% – 5.39%

• 3-year fixed: 4.69% – 5.09%

• Variable: 5.65% – 6.00%

While rates remain higher than pre-2023 levels, competition among lenders — especially credit unions and alternative lenders — has intensified. This benefits investors seeking multi-unit or rental portfolio financing.

💡 Pro Tip: Many lenders offer rate discounts for borrowers with existing rental properties or strong DSCR (Debt Service Coverage Ratio) scores.

. How Rental Market Changes Are Affecting Investor Mortgages

The rental market in 2025 remains strong but shifting.
According to CMHC, average rent increases in major cities have reached:

• Toronto: +6.5% year-over-year

• Calgary: +5.8%

• Vancouver: +4.9%

However, stricter rental regulations and vacancy control policies in some provinces are affecting investor returns — making mortgage strategy more important than ever.

Investors are increasingly choosing:

• Shorter-term fixed mortgages (2–3 years) to ride upcoming rate cuts.

• Refinancing existing properties to unlock equity for new purchases.

• Alternative lenders offering more flexible approval for rental income.
  
  Why Investors Are Adjusting Strategies Ahead of 2026

  Many real estate investors believe 2025’s final quarter will set the stage for next year’s growth cycle.
  With rate cuts expected, the strategy is shifting from “hold and wait” to “refinance and expand.”

  Key investor trends in September 2025:

  • Portfolio refinancing: Unlocking capital to buy undervalued properties.

  • Pre-approvals before rate drops: To secure better long-term returns.

  • Diversifying into smaller cities: Hamilton, Halifax, and Saskatoon show emerging rental demand.

  Working with brokers like RateShop.ca helps investors compare lender programs across banks, credit unions, and private lenders — ensuring optimal returns.
  
  4. What Smart Investors Are Doing Now

  • Refinancing while rates are stable to prepare for upcoming acquisitions.

  • Analyzing DSCR and LTV ratios for multi-unit investments.

  • Monitoring local market trends — especially rent growth versus property taxes.

  • Considering joint ventures to scale portfolios while managing risk.
    

  Conclusion

  September 2025 is shaping up as a pivotal month for real estate investors in Canada.
  With mortgage rates holding steady and rental markets evolving, strategic refinancing or new acquisitions today could pay off significantly once rate cuts begin later this year.
  Investors who act early — and align with expert brokers — will be best positioned for the next property boom.